WEALTH MANAGEMENT | Tony Chua, Hong Kong

DBS Hong Kong to pay Lehman buyers HK$651mln

Lehman Brothers notes buyers classified as having low to medium risk would get money plus interest.

DBS Hong Kong, a unit of Singapore's DBS Group Holdings, will pay out a combined HK$651 million to some buyers of Lehman Brothers constellation notes, the territory's financial regulator said.

Customers classified by the bank as having a low to medium risk profile would receive their money returned plus interest that would have been payable had it been placed in a fixed-term deposit, Hong Kong's Securities and Futures Commission said in a statement.

Investors in Singapore, Hong Kong and Indonesia who bought the product had lost their money after the U.S. investment bank Lehman Brothers went under in 2008 according to a report in Reuters.

The constellation notes are credit-linked notes related to the collapsed U.S. bank.

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